Explosive | NXP and Freescale announce $40 billion merger!

　　Key points:

　　Strengthen NXP's leadership strategy in "Secure Connections for Smarter World";

　　William's note: "Smarter World," according to the NXP website, is translated as "Smart Living" (智慧生活), not "Smarter Planet" as advocated by IBM.

　　To become the world's #1 automotive semiconductor supplier;

　　To become the world's #1 general-purpose MCU supplier;

　　US$500 million in synergy costs;

　　On a Non-GAAP basis, the first-year dividend of the combined entity will increase.

　　NXP（恩智浦）announced a merger with Freescale（飞思卡尔）valued at US$40 billion.

　　Announcement footnote: The merger value specifically refers to the enterprise value at the close of February 27, 2015

　　William's note: As of the close on the 28th in the US, NXP's market cap is 19.6 billion, Freescale's market cap is 11.1 billion

　　This merger will make the new company a leader in automotive semiconductor solutions and general-purpose MCU products. The new company will also target growth opportunities in areas such as security, connectivity, and processors.

　　Richard Clemmer, CEO of NXP, announced: "Today's merger is an important step in our commitment to becoming a leader in high-performance mixed-signal solutions. The combination of the two companies has created a powerful group dedicated to the high-growth opportunities of 'Smart Living'. We strongly hope to flourish across the market, achieving higher profits and cash, and delivering maximum returns to the shareholders of both companies." Clemmer will become the CEO of the merged company.

　　Gregg Lowe, CEO of Freescale, said: "We believe this merger will bring significant value to the shareholders, customers, and employees of the two highly successful and highly complementary companies. Both companies hold leadership positions in the market and are committed to delivering exceptional value to customers. After the merger, our scope, scale, and global footprint will enable our company to continue growing. This will also accelerate the strategic investments of both companies, allowing us to bring more comprehensive solutions to customers."

　　(Transaction details omitted)

　　The transaction is expected to be completed in the second half of 2015. NXP will contribute USD 1 billion in cash, USD 1 billion in debt, and USD 115 million in NXP common stock to the transaction. After the transaction, Freescale shareholders will hold 32% of the shares of the new company.

　　The boards of directors of both parties approved the transaction by separate anonymous votes.

　　Article source: Semiconductor Industry Trends